[This article was updated 13 April 2021, 7.00PM]
Singapore-based technology company Grab announced today (April 13) that it intends to go public in the United States in partnership with Altimeter Growth Corp (Nasdaq: “AGC”).
It is expected to be the largest-ever US equity offering by a Southeast Asian company. The combined company expects its securities will be traded on NASDAQ under the symbol “GRAB” in the coming months.
The proposed transactions value Grab at an initial pro-forma equity value of approximately US$39.6 billion (S$53.16 billion) at a PIPE size of more than US$4.0 billion (S$5.37 billion) and will provide Grab with approximately US$4.5 billion (S$6.04 billion) in cash proceeds.
Grab’s plans to list via the SPAC route comes after after talks to merge with Indonesian ride-hailing rival Gojek fell through.
Previously, sources familiar with the issue told The Business Times that the region’s two largest ride-hailing firms were unable to agree on various issues, including “valuation and corporate culture”.
Grab’s decision to become a public company was driven by strong financial performance in 2020, despite COVID-19. At the same time, the company has made significant strides towards profitability, with a key focus on building a resilient business and delivering sustainable growth.
“As we become a publicly-traded company, we’ll work even harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds,” said Grab co-founder and CEO Anthony Tan.
Featured Image Credit: Grab